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Stop Auto Fraud Act of 2026 would make staged crashes a federal crime
The bill would create federal criminal penalties that scale from up to 10 years in prison to life, depending on whether the staged crash causes no injury, serious injury, or death.
The American Property Casualty Insurance Association has backed new legislation that would make staging or fabricating a motor vehicle crash to file a fraudulent auto insurance claim a federal crime for the first time, according to Insurance Business.
APCIA said auto claims fraud, including intentional crashes and even AI-altered photo evidence, drives up costs across the system and contributes to higher premiums for everyone. The group pointed to state reforms that strengthened enforcement and disrupted organized fraud rings, saying some states have seen premium reductions.
The proposed Stop Auto Fraud Act of 2026, introduced September 3, would set federal penalties that scale with harm: up to 10 years in prison if the staged crash causes no injury, up to 20 years if it causes serious bodily injury, and up to life in prison if it results in death. Any fines collected would flow into the Highway Trust Fund, which finances road, bridge, and public transit projects.
Lawmakers backing the bill tied it to premium impacts on families and to organized fraud operations that cross state lines, the outlet reported. The proposal would establish criminal penalties specifically for staged crashes, extending reforms already adopted by several states.